How Does Indexed Universal Life Insurance Work?

Indexed universal life (IUL) insurance is the same as traditional universal life except for how the interest is credited. It's based partly on the upward movement of a stock market index. Therefore, growth in the value of the policy is potentially higher.

• Interest based partly on a market index
• Protected from the market's downside
• Flexible coverage throughout your life

What it can do for you

An indexed universal life insurance has the benefits of traditional universal life plus the potential for greater growth in your policy value.

Gives you upside potential

An indexed universal life insurance policies credit interest based partly on the upward movement of a major stock market index, so when the market does well, so do you. Over the life of the policy, this could mean more cash value and more supplemental retirement income. And the tax-deferred benefits of a traditional universal life policy still apply.

Gives you downside protection

You also get a guaranteed minimum interest rate with some indexed universal life policy. So while you're taking advantage of the market going up, you'll never suffer losses due to the market going down.

What else it can do for you

An Indexed Universal Life (IUL) insurance policy gives you the same flexibility and safety of other universal life policies.

Puts you in control

As your needs change, your policy can change, too. You can change the death benefit, increase or decrease your premiums, and add options or riders to fit your needs.

Transfers your wealth

An Indexed Universal Life policy can help you leave a legacy to pass on to your heirs by giving them as much of your estate as possible, while making sure your tax and other obligations are satisfied.

Builds your savings

Indexed universal life insurance provides a tax-deferred way of accumulating a cash value at competitive interest rates.

Gives you access to funds

You can make withdrawals or borrow against, the cash value in your policy. Your Indexed universal life policy can also be used as collateral for securing an outside loan, letting you tap the equity in your policy for a variety of needs: education, retirement and emergencies.

Protects your family

The death benefit gives you peace of mind knowing that your loved ones will not face financial hardship should you die. And the value can grow with your family and your needs.